Profile No.

: 40 NIC Code: 20233

LIQUID DETERGENT
1. INTRODUCTION:

Synthetic detergents have made rapid strides in India during the last decade. Liquid
synthetic detergents are a consumable item and are used for cleaning of silk cloth, woolen
clothes, utensils, machinery, and floor and in textile industry etc.

A detergent is a surfactant or a mixture of surfactants with cleaning properties in dilute

solutions. These substances are usually alkyl benzene sulfonates, a family of compounds that
are similar to soap but are more soluble in hard water, because the polar sulfonate (of
detergents) is less likely than the polar carboxylate (of soap) to bind to calcium and other
ions found in hard water.

In most household contexts, the term detergent by itself refers specifically to laundry
detergent or dish detergent, as opposed to hand soap or other types of cleaning agents.
Detergents are commonly available as powders or concentrated solutions. Detergents, like
soaps, work because they are amphiphilic: partly hydrophilic (polar) and partly hydrophobic
(non-polar). Their dual nature facilitates the mixture of hydrophobic compounds (like oil and
grease) with water. Because air is not hydrophilic, detergents are also foaming agents to
varying degrees.

2. PRODUCT & ITS APPLICATION:

Detergents are classified into three broad groupings, depending on the electrical charge of
the surfactants.

Household cleaning
 One of the largest applications of detergents is for household cleaning including dish
washing and washing laundry. The formulations are complex, reflecting the diverse demands
of the application and the highly competitive consumer market.

Fuel additives
Both carburetors and fuel injector components of Otto engines benefit from detergents in
the fuels to prevent fouling. Concentrations are about 300 ppm. Typical detergents are long-
chain amines and amides such as poly isobutene amine and poly isobutene amide.

Biological reagent
Reagent grade detergents are employed for the isolation and purification of integral
membrane proteins found in biological cells. Solubilization of cell membrane bilayers requires
a detergent that can enter the inner membrane mono-layer.

3. DESIRED QUALIFICATIONS FOR PROMOTER:

Graduate in chemical discipline.

4. MARKET POTENTIAL AND MARKETING ISSUES, IF ANY:

According to India Detergent Market Outlook, 2021, the overall market for detergent is
growing with a CAGR of 13.06% from the last five years. Detergents are available in three
forms, namely powder detergent, bar detergent and liquid detergent. Powder detergents are
widely accepted by Indian consumers and dominate the industry. Even though detergent
bars are still used in rural areas, they are fast disappearing from the market because of
ineffectiveness.

The detergent industry in India is mostly captured by organized players, but unorganized
regional players have a significant hold on the rural areas. HUL, Rohit Surfactants, P&G,
Nirma and Jyothy Laboratories are the major players in the organized market. They have
 popular brands like Ghari, Surf Excel, Active Wheel, Rin, Tide, Nirma, Ariel, Mr. White and
Henko in their product portfolio.

On the basis of pricing, the organized detergent market can be further divided into three
categories, such as popular (economy), mid-range and premium. The popular category
consists of brands like Ghari, Nirma and Wheel; the mid-range category consists of Tide, Rin
and Mr. White; and the premium category includes Surf Excel, Henko and Ariel. Hindustan
Unilever dominates the high-priced premium and mid-range category, whereas Ghari
dominates the low-priced popular category. It is common consumer item and the demand for
which is increasing. It is becoming popular both in rural and in urban areas. Therefore,
marketing of this product may not be a problem.

5. RAW MATERIAL REQUIREMENTS:

I. Raw Material (p.m.)

S. No Description Quantity Value Rs.
1 Acid slurry 300 kg. 30,000
2 Caustic Soda 55 kg 4,000
3 Urea 120 kg 1,200
4 Perfume 1 kg. 1,000
5 Ph. strips -- 200
6 Testing agents -- 1,000
7 Packing materials -- 20,000
Total 57,400

II. Utilities per month

Sr. No. Description Value in Rs.
1 Power 1000
2 Water 300
Total 1300
6. MANUFACTURING PROCESS:

The process of manufacture consists of neutralization of acid slurry. Measured quantity of

acid slurry is taken in SS kettle and diluted with known quantity of water with continuous
stirring. A solution of caustic soda is prepared by dissolving measured quantity of caustic
soda in measured quantity of water. The acid slurry is neutralized by a slow addition of
caustic soda solution till it is neutralized. The pH of the solution is maintained and acid slurry
is taken in plastic containers. Then known quantity of urea is added and kept for settling.
Small quantity of perfume is added to liquid detergent before packing.

7. MANPOWER REQUIREMENT:

The enterprise requires 6 employees as detailed below:

Sr. No. Designation of Employees Monthly

Number of employees required
Salary ₹
Year-1 Year-2 Year-3 Year-4 Year-5
1 Machine Operators 12,000 1 1 1 1 1
2 Helpers 8,000 1 1 1 1 1
3 Production supervisor 15,000 1 1 1 1 1
4 Accounts/Sales Asset 12,500 2 2 3 3 3
5 Office Boy 9,000 1 1 1 1 2
Total 6 6 7 7 7

8. IMPLEMENTATION SCHEDULE:

The project can be implemented in 3 months’ time as detailed below:

 Sr. No. Activity Time Required
(in months)
1 Acquisition of premises 1.00
2 Construction (if applicable)
3 Procurement & installation of Plant & Machinery 1.00
4 Arrangement of Finance 1.00
5 Recruitment of required manpower 1.00
Total time required (some activities shall run concurrently) 3.00

9. COST OF PROJECT:

The project shall cost ₹ 20 Lakhs as detailed below:

Sr. No. Particulars ₹ in Lacs

1 Land 500 sq. Feet 5.00
2 Building 300 sq. feet 5.00
3 Plant & Machinery 3.00
4 Furniture, Electrical Installations 1.00
5 Other Assets including Preliminary / Pre-operative expenses 1.00
6 Margin for Working Capital 5.00
Total 20.00

10. MEANS OF FINANCE:

Bank term loans are assumed @ 75 % of fixed assets. The proposed funding pattern is as
under:

Sr. No. Particulars ₹ in Lacs

1 Promoter's contribution 5.00
2 Bank Finance 15.00
Total 20.00
11. WORKING CAPITAL CALCULATION:

The project requires working capital of ₹ 6.00 lacs as detailed below:

Sr. No. Particulars Gross Amt Margin % Margin Amt Bank Finance
1 Inventories 2.00 25 0.50 1.50
2 Receivables 3.00 25 1.50 1.50
3 Overheads 1.00 100 1.00 0.00
4 Creditors - - -
Total 6.00 3.00 3.00

12. LIST OF MACHINERY REQUIRED:

A detail of important machinery is given below:

Value
Sr. No. Particulars UOM Qtty Rate (₹)
(₹ in Lacs)
Plant & Machinery / equipments
a) Main Machinery
i. Vessel with stirrer Nos 1.00 50,000 0.50
ii. Mixing Vessel Nos 1.00 30000 0.30
iii. Storage vessel Nos. 2.00 20000 0.20
b) Ancillary machinery
I. Weighing Balance Nos 1.00 10000 0.10
ii. Packing machine LS 1.00 20000 0.20
sub-total Plant & Machinery
Furniture / Electrical installations
a) Office furniture LS 1.00 1.00
b) Stores /showcase LS 1.00 0.70
c) Computer & Printer Nos 1.00 1,00,000 2.00
sub total 5.00
Other Assets
a) Rent Deposits
sub-total Other Assets
Total 5.00
13. PROFITABILITY CALCULATIONS:

Sales: 100 liters per day and 30 kiloliters per annum @ Rs. 90 per liter
Turnover: Rs. 27.00 lakhs @ 100 % capacity.

Sr. No. Particulars UOM Year-1 Year-2 Year-3 Year-4 Year-5

1 Capacity Utilization % 60% 70% 80% 90% 100%
2 Sales ₹. In Lacs 16.20 18.90 21.60 24.30 27.00
Raw Materials & Other
3 ₹. In Lacs 7.50 8.75 10.00 11.25 12.50
direct inputs
4 Gross Margin ₹. In Lacs 8.70 10.15 11.60 13.05 14.50
5 Overheads except interest ₹. In Lacs 8.00 8.00 9.00 10.00 11.00
6 Interest ₹. In Lacs 0.15 0.15 0.12 0.10 0.08
7 Depreciation ₹. In Lacs 1.5 1.5 1.5 1.5 1.5
8 Net Profit before tax ₹. In Lacs -0.95 0.50 0.98 1.45 1.92

14. BREAKEVEN ANALYSIS:

The project shall reach cash break-even at 76.41 % of projected capacity as detailed below:

Sr. No. Particulars UOM Value

1 Sales at full capacity ₹. In Lacs 27.00
2 Variable costs ₹. In Lacs 12.50
3 Fixed costs incl. interest ₹. In Lacs 11.08
4 BEP = FC/(SR-VC) x 100 = % of capacity 76.41